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SB 1029

Financial institutions: credit unions; notice requirements for certain closures by credit unions; modify. Amends sec. 221 of 2003 PA 215 (MCL 490.221).

2025-2026 Regular Session Introduced by Joe Bellino and 6 co-sponsors

The bill clarifies who can order or authorize temporary emergency closures of a Michigan credit union and its branches, how long they last, and required notices.

REFERRED TO COMMITTEE ON FINANCE, INSURANCE, AND CONSUMER PROTECTION
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Bill Summary · SB 1029

Summary of SB 1029 (2025-2026) – Michigan

Purpose and intent

  • The bill amends section 221 of the Michigan Credit Union Act (2003 PA 215, as amended) to modify and clarify the authority and procedures related to temporary closures of a domestic credit union’s main office and/or branches in emergencies, or on designated observance days.
  • It preserves and refines the director’s emergency closure powers while outlining notice requirements and certain impacts on operations and holidays.

Key provisions and changes

  • Emergency closures by the director:
    • The director may issue an order requiring a domestic credit union to close its principal place of business or any or all branches if an emergency exists. Closed facilities must remain closed until the director issues a subsequent order ending the emergency.
    • The director must promptly notify the governor about an emergency-closure order.
  • Designated national observance closures:
    • The director may authorize a credit union to close on days designated by the President of the United States or the Michigan governor as a day of national mourning, rejoicing, or other special observance.
  • Operator-initiated closures in emergencies (without a formal director order):
    • If no emergency order is issued by the director, the credit union’s general manager or another designated officer may close the principal place of business or branches if an emergency exists, and may keep them closed until the officer determines the emergency has ended.
  • Notice requirements:
    • A credit union closing under this section must provide notice to the director and to other appropriate governmental entities as required by law.
  • Treatment of closure periods for legal/operational purposes:
    • The period of a closure is treated as an emergency condition or a legal holiday, not a banking day, for purposes of any legal obligation where the status (holiday, banking day, or emergency response) matters.
  • Employee obligations:
    • The bill explicitly notes that it does not alter any existing obligations of a credit union or its employees under state or federal law.

Who/what is affected

  • Domestic credit unions operating in Michigan (their principal place of business and branches).
  • The Michigan Department of Insurance and Financial Services’ regulatory framework (the director’s office), and, by extension, state government officials who may be involved in emergency declarations or observance designations.
  • Credit union employees, with the caveat that existing employee obligations remain unchanged.

Procedural and timeline aspects

  • Trigger for action:
    • Emergency declaration by the director, or a designated officer within the credit union (in the absence of a director’s emergency order).
  • Notifications:
    • Director must be notified of closures; governor must be promptly informed of director-issued emergency orders.
  • Closure duration:
    • Closures remain in effect until the responsible authority (director or designated officer) determines the emergency has ended.
  • Observance days:
    • Closures may occur on nationally or state-designated days of mourning, rejoicing, or other observances.
  • Legal day designation:
    • Closure periods are treated as emergencies or legal holidays, affecting the classification of banking days for compliance purposes.

Practical impact and considerations

  • Provides a clear framework for temporary and emergency closures to ensure continuity of operations and regulatory oversight.
  • Balances director authority with credit union internal decision-making for emergency responses.
  • Establishes notice obligations to regulators and, by implication, to other governmental entities.
  • Clarifies that emergency-related closures do not alter existing employment obligations.

If you’d like, I can add a comparison to current law (pre-SB 1029) to highlight exact changes, or outline potential oversight and implementation considerations for credit unions.

Compiled from official sources — confirm details with the bill’s official record.

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